10% tax starting rate

westkirby

when does the 10% starting rate on savings kick in, and is it age related any help please

jem16

If your earnings are over £8715 you are not entitled to any of the 10% savings band.

If your earnings are between £6475 and £8715 then you are entitled to some or all of the 10% band.

The 10% band is for savings up to £2440 provided the above criteria is met.

Mikeyorks

It is age related in that the additional £2440 sits on top of the personal allowance.

For example - if you have the over 65 allowance of £9490 - then the 10% savings rate operates between £9490 and £11930. If your earned income exceeds £11930 then the 10% band doesn't exist.

There's some examples at the bottom of this page. But watch that HMRC haven't updated it since 08-09 .... so you will need to inflate both the personal allowance to the appropriate rate and also uprate the 10% figure from £2320 to £2440 :-

http://www.hmrc.gov.uk/tdsi/ten-per-cent-guidance.htm

zygurat789

Unless of course you're getting dividends and your total income is less than £43,875, in which case all dividends are taxed at 10%.